GM stops matching 401(k) payments.

In yet another sign of its financial trouble, General Motors Corp. will halt matching payments to all employees’ 401(k) savings plans.

The temporary suspension, which would affect all 1,340 employees at GM’s engine plant in the Town of Tonawanda and the automaker’s entire U.S. workforce, would take effect Nov. 1.

The action, which a spokeswoman said is aimed at conserving cash, comes in the face of continued declining auto sales.

The Detroit manufacturer (NYSE: GM) also is said to be preparing for new involuntary cuts in its salaried workforce, which totals about 230 at Tonawanda, although a corporate spokesman did not confirm a report which was carried Oct. 23 by some news media.
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